KUALA LUMPUR (May 22): Rakuten Trade Sdn Bhd launches Malaysia’s first fully digital US fractional share trading service for NYSE/Nasdaq-listed shares.

“We are making significant changes to our services in ways that will stimulate online trading and boost retail participation, especially among new investors. US fractional share trading is a game-changer for Malaysia’s investors, allowing for [a] more affordable, diversified and balanced portfolio that includes familiar brands like Apple, Amazon and Tesla,” said Kazumasa Mise, chief executive officer of Rakuten Trade.

This feature is the second enhancement to Rakuten Trade’s US trading platform. Last August, the group announced its foreign currency settlement services, enabling investors to choose to trade in either ringgit or dollars.

Additionally, the group made two notable changes previously: (i) lowered its brokerage fees to a low of RM1, and (2) revamped its Points Program to simplify the earning of brokerage free trades.

Mise added that “Rakuten Trade’s foreign market trading platform serves as a catalyst for new investors to test trading strategies on Bursa Malaysia, before diversifying onto the US markets”.

“Over the last 16 months, more than 30,000 clients have added foreign market trading to their Cash Upfront account, resulting in over 160,000 successful orders placed. This service presently accounts for nearly 21% of the company’s revenue,” he concluded.

On Rakuten Trade, fractional share trading starts from as small as 0.01 (BUY) or 0.0001 (SELL) for US stocks, ADRs and ETFs tradeable. Brokerage fees range from RM1 to RM100, or US$1.88 to US$25.

As of April 30, 2023, Rakuten Trade had activated almost 265,000 accounts and processed a total trading value of more than RM115 billion since its inception in May 2017. Its clients’ assets under administration surpassed RM3.7 billion.